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Romanian Govt May Have Trouble Paying Salaries And Pensions In Nov, Dec – PM

The Romanian Government has no problem paying salaries and pensions at the moment, but may run into difficulties towards the end of November, should certain commitments taken before the IMF not be met, acting Prime Minister Emil Boc said Thursday.
Romanian Govt May Have Trouble Paying Salaries And Pensions In Nov, Dec - PM
15 oct. 2009, 21:02, English

The commitments mentioned by the prime minister, which must be satisfied rapidly, include adopting the pension law, the fiscal responsibility law, the law cutting budget costs, as well as submitting the draft budget for 2010 to Parliament.

On a Realitatea TV program, Boc said the new Cabinet must be appointed as soon as possible, in order to complete these objectives.

Romanian secretary of state within the Ministry of Labor Mihai Seitan said Thursday the current political crisis, doubled by the economic one, could place Romania in a situation where salary payments could be delayed on certain segments. Seitan said these two crises, political and economic, lead to a delay in the funds from the European Union.

He added that, if the situation fails to „reinvigorate”, soon, in two weeks, there is the risk for the next installment of IMF funds to be halted, which would make it impossible to cover this year’s deficit. He went on saying that if Romania does not cut spending by some EUR1 billion, the next installments of IMF money could also be lost.

Prime Minister Boc said Wednesday that failure to carry out Romania’s international commitments may render the state unable to pay salaries and pensions.